No, Denmark did not propose to ban self-custody wallets

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No, Denmark did not propose to ban self-custody wallets
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The Danish Financial Supervisory Authority denied the reports that falsely suggested that the regulator plans to ban self-custodial wallets.

The Danish Financial Supervisory Authority said the exemption of self-custodial wallets from MiCA doesn’t mean such wallets should be banned.

According to Thygesen, MiCA explicitly exempted crypto asset services"provided in a fully decentralized manner without any intermediary.” As such, for a service to be regulated under MiCA, it must not be fully decentralized. It also should involve one of the activities listed in Article 3 of MiCA, such as crypto custody, trading and other crypto services.

Mikko Ohtamaa, co-founder of algorithmic investment protocol Trading Strategy, falsely interpreted the assessment in an X post on June 26. He believed that by exempting self-custodial wallets, DFSA essentially wanted to stop offering such wallets in Denmark, but that was not the case.) without any intermediary. This means that a user directly holds crypto assets and has full control over the cryptocurrency stored.

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